Confirming its earlier statements, Netflix’s CEO said they’re working on a cheaper and ad-tier plan for their platform.
More details and pricing of this plan aren’t available yet, but the Netflix CEO said an ad tier wouldn’t be as we all see today – but maybe an option to turn off all the ads. So, it’s for those who really don’t mind watching ads. Another report says that NBC Universal and Google are trying to aid Netflix to build its ad-tier version.
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The first quarter of this year marks the first time in a decade that Netflix lost its subscribers! This led to a quick downfall in its share price and triggered the company to soon lookout for more solutions to earn money. And the results are harsh – password crackdown and an ad-tier version.
Netflix announced they would crack down on password sharing by introducing a new group sharing plan with a slightly higher price, and a cheaper ad-tier version of its platform. Confirming this again, the platform’s CEO today Ted Sarandos said at the Cannes Lions festival that Netflix is adding an ad tier with a lower price.
Details of when they’d be launching this and for what price aren’t revealed, but expect it to arrive at the end of this year. When asked for more information, a Netflix spokesperson told Engadget;
“We are still in the early days of deciding how to launch a lower-priced, ad-supported option and no decisions have been made. So this is all just speculation at this point.”
Moreover, this ad tier wouldn’t be similar to what we see today on most platforms, but still remain an option for users, like Peacock does – or something else.
Another report from The Wall Street Journal said that Google and NBCUniversal are engaging to help Netflix build their ads-included plan, maybe with some exclusive arrangement. Roku too was said to have been involved earlier, but no more information about that later.